With a long leasehold premises in Roundhay, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Residents in Roundhay with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Roundhay,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Roundhay valuers.
Kian was the the leasehold proprietor of a high value apartment in Roundhay being sold with a lease of a little over 61 years remaining. Kian on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to exercise his statutory right. Kian obtained expert advice and secured satisfactory resolution informally and sell the property.
Dr L Adams took over the lease of a one bedroom apartment in Roundhay in July 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Roundhay with an extended lease were worth £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2078. Taking into account 52 years unexpired we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.
In 2012 we were e-mailed by Dr Natalie López who, having was assigned a lease of a first floor flat in Roundhay in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Roundhay with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2098. Given that there were 72 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.